2021 was a rough year for home buyers. High prices and low inventory made it difficult for many prospective buyers, including first-timers, to find the home of their dreams. However, 2022 could see the market level out and “normalize,” and in turn, make it much easier for aspiring homeowners. The Mortgage Reports talked to some experts, and here a couple of predictions for what they think will happen to the housing market in 2022:
Home Prices:
High prices were one of the biggest obstacles buyers had to overcome in 2021, and that trend is looking to continue into next year. However, while prices might not go down right away, the large gains in home prices are likely to slow down over time, making affordability less of an issue, but credit unions will still need to help their members figure out a mortgage that works for members and what they can afford.
Increased Inventory:
During the past year, supply could not keep up with the demand of eager buyers entering the market and those looking for a more suburban environment as a base for their home offices. The number of new homes and existing ones is expected to increase next year, but supply is likely to still be lacking for a while, perhaps for several years, so be prepared for home hunts to remain competitive.